Mumbai The food processing industry, currently the fifth largest sector in India’s economy, is showing potential for massive expansion, particularly in the export market, a report by FICCI and Bain & Co says. Costs of processing and packaging food can be up to 40% lower in India, than parts of Europe, making it an attractive venue for investment. Several multinational players are bringing in new products to capitalise on the growing demand for packaged goods.
The report, which was launched at the “Food World India 2012 Convention,” pegged the packaged food industry at R1 lakh crore, the majority of which is accounted for by dairy and biscuits. Analysts predict growth rates for the packaged food sector anywhere from 9%-13% for the next 5-6 years.